credit card payoff calculator

Interactive credit card payoff calculator: model fixed payments, target months, or minimum payments. See interest, payoff date, and a month-by-month schedule.

Full original guide (expanded)

Authoritative data source & methodology

AuthoritativeDataSource: U.S. Consumer Financial Protection Bureau (CFPB) credit card disclosures and common issuer methodologies; Federal Reserve Board—Truth in Lending (Regulation Z, 12 CFR Part 1026) guidance on APR disclosure. All computations assume monthly compounding at APR/12 and standard amortization or minimum payment rules.

  • CFPB: “Understand Your Credit Card Statement” (educational guidance).
  • Federal Reserve Board: “Truth in Lending (Regulation Z), APR Disclosures” (technical basis).

Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.

The formula explained

Monthly rate: $ r = \\dfrac{\\text{APR}}{12} $

Payment for target months: $ M = \\dfrac{B\\,r}{1 - (1+r)^{-n}} $

Months for a fixed payment (when $M > B\\,r$): $ n = -\\dfrac{\\ln\\left(1 - \\dfrac{B\\,r}{M}\\right)}{\\ln(1+r)} $

Interest each month: $ I_m = \\text{Balance}_{m-1} \\times r $;   Principal paid: $ P_m = M - I_m $.

Glossary of variables

  • B – Starting balance.
  • APR – Annual Percentage Rate; nominal annual rate quoted by your card.
  • r – Monthly rate (APR/12 as a decimal).
  • M – Monthly payment (either chosen or calculated).
  • n – Number of months to payoff.
  • Minimum payment rule – max(Min% × balance, Floor$), customizable to match your issuer.

How it works: a step-by-step example

Example

Balance B = $5,000, APR = 19.99% (r ≈ 0.1999/12 ≈ 0.01666). Target months n = 24.

Required payment: $ $M = \\dfrac{5000\\times0.01666}{1-(1+0.01666)^{-24}} \\approx \\$252.\\,$ Adding a $50 extra payment makes $M \\approx \\$302, reducing interest and potentially shaving months if rounded.

FAQs

Does this include fees or promo APRs?

No. Fees, deferred interest, or promotional APRs vary by issuer. Enter an effective APR or split scenarios.

Why is my result different from my statement “Payoff in X years” box?

Issuers may round differently, apply fees, use billing-cycle day counts, or change minimum rules; this tool uses transparent monthly compounding and your inputs.

What payment avoids negative amortization?

At minimum, pay monthly interest: $B\\,r$. The calculator flags if your fixed payment is below interest.

Can I simulate only minimum payments?

Set your fixed payment equal to the minimum formula shown (or leave fixed low) and review months to payoff; if it never declines, increase payment.

Will paying biweekly help?

This tool models monthly billing cycles. Paying the same total monthly earlier in the cycle reduces average daily balance slightly—check your issuer’s rules.

Strumento sviluppato da Ugo Candido. Contenuti verificati da, CalcDomain Editorial Board.
Ultima revisione per l'accuratezza in data:

Audit: Complete
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted text)
Monthly rate: $ r = \\dfrac{\\text{APR}}{12} $ Payment for target months: $ M = \\dfrac{B\\,r}{1 - (1+r)^{-n}} $ Months for a fixed payment (when $M > B\\,r$): $ n = -\\dfrac{\\ln\\left(1 - \\dfrac{B\\,r}{M}\\right)}{\\ln(1+r)} $ Interest each month: $ I_m = \\text{Balance}_{m-1} \\times r $; Principal paid: $ P_m = M - I_m $.
Variables and units
  • P = principal (loan amount) (currency)
  • r = periodic interest rate (annual rate ÷ payments per year) (1)
  • n = total number of payments (years × payments per year) (count)
  • M = periodic payment for principal + interest (currency)
Sources (authoritative):
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
  • Initial audit spec draft generated from HTML extraction (review required).
  • Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
  • Confirm sources are authoritative and relevant to the calculator methodology.
Verified by Ugo Candido on 2026-01-19
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Formulas

(Formulas preserved from original page content, if present.)

Version 0.1.0-draft
Citations

Add authoritative sources relevant to this calculator (standards bodies, manuals, official docs).

Changelog
  • 0.1.0-draft — 2026-01-19: Initial draft (review required).